What Are the Main Trading Platforms for Algorithmic Trading
What Is a Trading Platform?
Those who invest in financial markets today increasingly choose independent setups that use online trading platforms offering higher levels of usability. But what is an online trading platform?
When talking about trading platforms, we are essentially talking about software that connects a bank or brokerage account to a financial market. Each online trading platform, being software produced by competing companies, has different characteristics. However, the latest generation of online trading software progressively becomes more valuable — giving traders detailed information, all the tools of technical analysis, and the ability to make transactions anywhere and anytime.
Trading softwares are graphical interfaces that allow the user to operate. In some cases, online platforms are web-based tools that traders can use directly in a browser (such as TradeStation or Plus500), while others are downloaded and installed locally (such as MetaTrader 4 or MetaTrader 5). In both cases, online trading softwares are compatible with the major operating systems (Windows, Mac, Unix, Linux).
What Are the Best Trading Platforms for Algorithmic Trading?
When choosing a broker, it is important to know which trading platforms it supports. There are generally two main types of trading with online brokers: CFD/Futures or Binary Options. Binary options are not trading — they are betting, and will not be covered here.
Among brokers offering Futures and CFDs, the best combination of low Bid/Ask spread, fast execution for algorithmic systems, and a good historical data series for backtesting is what separates a reliable broker from the rest.
Here is a comparison of the best trading platforms for retail algorithmic trading:
| Trading Platform | Cost | Programming Language | Difficulty |
|---|---|---|---|
| MetaTrader 4 | Free | MQL4 | Easy |
| MetaTrader 5 | Free | MQL5 | Easy |
| cAlgo | Free | C# | Medium |
| NinjaTrader | Paid | C# | Medium |
MetaTrader 4
MetaTrader 4 is the most widely used platform for retail algorithmic trading. Its native scripting language, MQL4, is relatively easy to learn and has a massive community of developers and resources. The built-in Strategy Tester supports backtesting with historical data, and thousands of free and paid Expert Advisors are available.
MetaTrader 5
MetaTrader 5 is the successor to MT4, using MQL5 — a more powerful but slightly more complex language. It supports a broader range of asset classes (stocks, futures, forex) and offers a more advanced backtesting engine with multi-currency and multi-threaded testing.
cAlgo
cAlgo is the algorithmic trading component of the cTrader platform. Strategies (called cBots) are written in C#, which is a more widely used language than MQL4/5 but requires more programming experience. cTrader is known for its clean interface and Level II pricing.
NinjaTrader
NinjaTrader is a professional-grade platform popular among futures traders. Strategies are written in C# using NinjaScript. It requires a paid license for live trading but offers a free simulation mode. It has a strong community and extensive third-party add-on ecosystem.